Why AB 1903 Is Key to Unlocking More Homeownership in California

If you’ve ever wondered why California builds so few condominiums, construction defect litigation is a big part of the answer. For decades, the threat of costly, drawn-out lawsuits has made condo development financially untenable for many builders and the people who pay the price are first-time homebuyers locked out of an already unaffordable market. Assembly Bill 1903, authored by Assemblymember Buffy Wicks, directly addresses this problem.

California’s construction defect law was established by SB 800 back in 2002 with a straightforward premise: when a homeowner identifies a defect, the builder fixes it, and if they don’t, the homeowner can sue. Simple, fair, functional. But over the past two decades, the process has drifted far from that original intent. Lawsuits now routinely get filed before any repair is attempted. Claims can proceed even when no actual damage has occurred, opening the door to speculative investigations and unlimited damages. And homeowners’ associations can drag individual homeowners into litigation affecting their property values and finances without so much as a membership vote.

The result: condo construction in California has dropped 75% since SB 800 passed. That’s not a market problem. That’s a policy problem.

AB 1903 fixes the problem by getting the system back to basics. The bill requires the pre-litigation repair process to actually be completed before any lawsuit is filed. It requires claimants to identify where a defect is and what evidence supports the claim which is basic information that speeds up the repair process. It restores the principle that a claim must involve real damage, not theoretical harm. And for builders who invest in third-party quality control during construction and complete repairs when issues arise, it provides what’s currently missing: a path to finality.

The bill also adds a meaningful consumer protection that’s long overdue, requiring HOA members to vote before their association files construction defect litigation that could affect every homeowner’s property value and finances.

Condominiums are one of the most important entry-level homeownership options we have. This bill won’t solve the housing crisis on its own, but it removes a real and documented barrier to building more of them. That’s exactly the kind of targeted, practical reform California needs.

The Housing Action Coalition is proud to be a sponsor of AB 1903 alongside the California Building Industry Association, California YIMBY, Bay Area Council, Council of Infill Builders, Habitat for Humanity California, and SPUR.